Newsletter

Environmental Governance Quarterly

Newsletter Volume 3

June 29, 2012

Dear friends,
Last three months have been very exciting for us at the Centre for Science and Environment (CSE). Many of our important work on industrial pollution and environmental governance were completed and released during this period. We completed a major study on Iron and Steel industries under our Green Rating Project (GRP). GRP is one of the most innovative public disclosure projectsin the world undertaken by CSE. The project rates the environmental and social performance of companies within an industrial sector based on life cycle analysis and discloses the information to public. Iron and steel sector is the fifth industrial sector to be rated by GRP. Before this we have rated Pulp and Paper Sector (1999 and 2004), Automobile Sector (2001), Chlor-Alkali Sector (2002) and Cement Sector (2005). All these sectoral ratings have led to significant improvements in the environmental performance of the companies and better policy formulation by the government.

The rating of the Iron and Steel Sector was released on 4th June by Minister of Environment and Forests, Smt. Jayanthi Natrajan at a public function in New Delhi. GRP rated India's top steel companies (all with production of more than 0.5 million tonnes of steel) on more than 150 parameters. Our final assessment is that the Indian steel sector is struggling to meet even the minimum national pollution standards and has tremendous scope for improvements in all areas: energy, water, pollution, health & safety etc. As a whole, the steel sector received a mere 19% marks and the One Leaf Award. Of the 21, only three companies scored over 35% marks and got the Three Leaves – which is an average performance. None of the companies got the prestigious Five Leaves Award.Our recommendation to the government and the industry is that the steel sector must be pushed to leapfrog towards global best practices; marginal improvements will not help as the sheer growth of the sector will lead to insurmountable social and environmental problems. We have covered the rating and it’s finding in detail in this newsletter.

In the newsletter we have also covered a study done by CSE on pollution from small scale steel factories in Jasodharpur Industrial Area (JIA), Kotdwar, Uttarakhand. The study has an interesting genesis. Since 2008 the local community living near the JIA has been protesting about the high levels of air pollution from these steel factories. In December 2011, the protests reached its zenith when the community blockaded the road leading to the industrial area, thereby bringing the production to a halt. The community had put forth many demands to remove the blockade and one of their demands was to get an independent environmental assessment done by CSE for JIA. The Uttarakhand Environment Protection and Pollution Control Board (UEPPCB) accepted their demands and requested CSE to do the independent assessment. The CSE completed its assessment and the report was released recently in Kotdwar. The finding of the report is very interesting as it vividly captures the problems inflicting the environmental governance in the country.

There are many more interesting issues which we have covered in this newsletter including India’s pilot study on Emission Trading Scheme for particulate matters, a snapshot of environmental regulations and regulatory institutions in China and some interesting judgements of the National Green Tribunal. We hope that you find these articles useful.

As always, we would be most happy to receive your feedback. You can e-mail your feedback/opinion at nivit@cseindia.org.

- Chandra Bhushan

Top Story

Stained Steel

The iron and steel sector is regarded as the core of Indian economy. Its players are big and powerful. It is extremely resource-intensive and polluting. On top of this, it is expanding at a phenomenal rate. This makes the sector a fit case for environmental scrutiny.

CSE's Environmental Assessment of Jasodharpur Industrial Area in Uttarakhand

Jasodharpur Industrial Area (JIA) of the State Infrastructure and Industrial Development Corporation of Uttarakhand (SIDCUL) has about 20 factories producing steel using induction furnaces. Situated near Kotdwar town of Pauri Garhwal district in Uttarakhand, JIA was set up in 1996-97.

Taking a cue from the Acid Rain Programme of the United States, Ministry of Environment and Forests has initiated a pilot Emissions Trading Scheme (ETS) to abate air pollution and enhance environmental quality.

Industrialisation in China and India started almost at the same time. But the rate of industrialisation in China was and is much higher than India because of their former policy 'grow first, clean later.'

On March 30, 2012, the National Green Tribunal held in Prafulla Samantra and Anr. vs Union of India and Ors. That the 31.1.2011 final order of the Environment Ministry – permitting the POSCO project to go ahead with certain conditions – should be suspended until a full review of the project can be undertaken.

We are delighted to inform you that the Centre for Science and Environment (CSE) in collaboration with Ministry of Environment and Forests (MoEF) and Central Pollution Control Board has started a training and capacity building programme for State Pollution Control Board (SPCB) and State Pollution Control Committee (SPCC).